## _cr13260 ## Source details **Canonical URL:** [_cr13260](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr13260.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr13260.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr13260.pdf.json) --- ### Executive summary — background and recent performance - Growth remained modest due largely to long-standing frail capacity, weather-related shocks, and structural weaknesses. - Inflation: peaked at 7.7 percent (y/y) at end-March 2013 and declined to 7.3 percent in May 2013; end-year inflation revised to 6 percent (FY2012/13). - International reserves: about six months of imports at end-May 2013. - Fiscal performance H1 FY2013: - Domestic revenues over the first half of FY2013 were about G4.2 billion (1.2 percent of GDP) below projections. - Authorities reduced non-priority current spending by about G2 billion in response. - Exchange rate and monetary developments: - Gourde depreciated against the U.S. dollar by 3.5 percent between October 2012 and June 2013. - BRH policy rates unchanged since January 2011. - BRH raised reserve requirement ratios on local currency liabilities cumulatively by 6 percentage points (to 35 percent) and on foreign currency liabilities by 5 percentage points (to 39 percent) in February–March 2013. - BRH foreign exchange market intervention: offered about $100 million between October 2012 and May 2013 (versus $44 million during the same period the year before). - Banking sector: - Total credit to the private sector grew by 24.1 percent at end-May 2013 (y/y). - Banks' average capital adequacy ratio: 16 percent at end-March 2013 (regulatory minimum 12 percent). - Non-performing loans remained low. ### Program status, requests, and staff recommendation - Arrangement under the Extended Credit Facility (ECF): - Amount: SDR 40.95 million (50 percent of quota); approved July 21, 2010; would expire on August 30, 2013. - Program implementation broadly satisfactory. - Performance through end-March 2013: - All end-March 2013 performance criteria were met. - Two indicative targets missed: BRH net credit to the Government and poverty-related spending. - All five relevant structural benchmarks through end-March 2013 remain to be fully implemented. - Authorities' requests: - One-year extension of the ECF arrangement to August 29, 2014; rephasing of remaining access (SDR 4.914) equally into three purchases with tests at end-March 2013, end-September 2013, and end-March 2014. - Completion of the sixth review and approval of the sixth disbursement: SDR 1.638 million. - Staff view: supports the one-year extension and recommends completion of the sixth review. ### Structural benchmarks — status through end-March 2013 and reprogramming - Strengthen the debt unit with fully operational middle and back office functions; prepare annual debt sustainability analyses. - Timing: End-March 2013 → Status: pending Parliament approval of the organic law on MEF reorganization; reprogrammed to End-December 2013. - Submit to Parliament a public debt law establishing legal and institutional framework for public debt management. - Timing: End-March 2013 → Status: Approved by the Cabinet but not yet submitted to Parliament; draft shared with IMF and in line with international standards; prior action noted as met in Appendix. - Reduce number of domestically-funded imprest accounts to three by ministry/institution; deploy network of public accounting offices; grant signature authority to public accountants. - Timing: End-March 2013 → Status: accounts significantly reduced but not yet to three; pilot deployment ongoing; reprogrammed to End-March 2014. - Roll out general ledger (GL) software in all ministries; start recording project and imprest account expenditures when effectively paid. - Timing: End-March 2013 → Status: World Bank financing secured; software installed in MEF; roll-out not completed in other ministries; reprogrammed to End-December 2013. - Establish unconstrained single-price foreign exchange auctions. - Timing: End-September 2012 → Status: given lack of competition, authorities plan to expand market participants prior to full implementation. ### Main policy priorities (agreed authorities and staff) - Increase domestic revenue and rationalize current expenditure to generate additional fiscal space for infrastructure and poverty-related spending. - Tackle impediments to public investment by improving public financial management and economic governance. - Strengthen monetary policy transmission by reducing excess liquidity and deepening financial intermediation. - Policy focus on macro stance for remainder of FY2013 and reforms for FY2014 to ensure medium-term external sustainability. ### Macroeconomic outlook and key risks - FY2013 (revised): - Real GDP growth: 3.4 percent (revised from 6.5 percent in the Fifth review). - End-year inflation: 6 percent (revised from 5 percent). - Overall balance will swing to a deficit of $290 million in FY2013 (versus a surplus of $272 million in FY2012). - FY2014 projections: - Real GDP growth: 4.5 percent projected. - Inflation: projected to recede to 5 percent with appropriate policies. - Gross reserves: projected to decline slightly below 5 months of imports at end-September 2014. - Key risks: - Domestic: heightened political tensions, lower revenue collection, vulnerability to natural disasters, weak public investment execution, delays in reforms. - External: exposure to global slowdown via remittances, trade, and official transfers. - Haiti's debt assessed as high risk given narrow export base. ### Fiscal policy and reforms (FY2013–FY2014) — adjustments and FY2014 framework - FY2013 adjustments and outcome: - Revenue shortfall of 2.3 percent of GDP offset by lower non-priority current spending (0.7 percent of GDP) and domestically-financed capital spending (1.8 percent of GDP). - Initial annual revenue target of G52 billion revised; authorities could collect G44 billion for the year (12.3 percent of GDP). - Budget support projected at G2.6 billion (or $60 million) versus G3.5 billion (or $85 million) initially anticipated. - Adjustments lead to a deficit of G19.6 billion, closely in line with initially budgeted deficit. - FY2014 budget highlights: - Overall deficit targeted at 6.9 percent of GDP. - Domestic revenue projected to increase by G6.6 billion (0.7 percent of GDP), mostly from higher petroleum product revenue (G4 billion) and improved revenue administration. - Budget support projected to drop to $45 million (0.5 percent of GDP) from $60 million (0.7 percent of GDP) in FY2013. - Current spending projected at 11.5 percent of GDP. - Wage bill projected to increase by about 13 percent: from G21 billion in FY2013 to G23.7 billion in FY2014 (increase of G2.8 billion), largely due to reclassification of items from subsidies and transfers (G2.5 billion). - Staff recommendation: future wage-bill increases be determined within a medium-term public administration modernization strategy. - Domestically-financed spending: 8.5 percent of GDP in FY2014 (from 7.4 percent in FY2013), driven by inclusion of G2.2 billion in education spending financed by the National Education Fund (FNE) and higher PCDR-related spending. - Financing of FY2014 deficit: - Domestic financing: 2.4 percent of GDP. - External financing: 4.5 percent of GDP (including PetroCaribe resources 4.3 percent of GDP). - Domestic financing includes drawdown of government and PCDR deposits at the central bank and net placements with commercial banks. - Public debt: - Total government gross debt projected to reach 24.7 percent of GDP. - Government debt net of PetroCaribe deposits projected at 20.8 percent of GDP. - Total government debt-to-GDP (medium-term fiscal anchor) will remain below 30 percent (the pre-earthquake level). ### Box 1 — Reclassification of expenditure items for the 2014 budget (highlights) - Reclassification details (selected): - Main reclassifications to the wage bill: - G1.3 billion of staff compensation from autonomous public agencies previously recorded as subsidies and transfers. - Compensation of 5,700 teachers: G200 million. - In-kind allowances previously recorded as goods and services. - Main reclassifications to goods and services: - G1.5 billion of autonomous agencies' spending previously recorded as subsidies and transfers. - G1.1 billion previously recorded in capital spending. - National Fund for Education itemized: G2 billion. - Budgetary impacts: - Wage bill: about 6.1 percent of GDP (from 5.8 percent in 2013). - Goods and services: 3.6 percent of GDP (from 3.2 percent in 2013). - FY2013 → FY2014 numerical reclassification (millions of gourdes, selected): - Wage bill: 20,923 (FY2013) → 23,700 (FY2014) - Goods and services: 11,465 (FY2013) → 13,820 (FY2014) - Reclassification of autonomous agency wage bill from subsidies: 1,328 - Reclassification of autonomous agency current expenditure from subsidies: 1,500 - Reclassification expenditure from capital spending: 1,142 ### Petroleum pricing, revenue implications, and Box 2 summary - Domestic petroleum prices fixed since March 2011; fees and taxes adjusted downward to keep pump prices unchanged. - Revenue impact: - Recent international oil prices triggered revenue losses that could reach 1.8 percent of GDP in FY2013. - Planned increase in domestic fuel prices coupled with projected decline in international prices expected to enable collection of at least G4 billion in FY2014. - Without adjustments and if international oil prices remain at current level, total cost to the budget could reach G6.5 billion (1.8 percent of GDP) for the full year; of this, about G5.5 is revenue forgone and the remainder is actual subsidies to the budget. - Box 2: Domestic Oil Price Mechanism — pump prices fixed since March 2011: - G200 (US$4.76) per gallon of Gasoline 95 - G195 (US$4.64) per gallon of Gasoline 91 - G162 (US$3.79) per gallon of diesel - G161 (US$3.84) per gallon of jet fuel (kerosene) - First-semester petroleum product revenues: - Actual revenue: G0.7 billion - Potential without the price mechanism: G2.9 billion - Budget envisaged: G2 billion ### Fiscal reforms and revenue measures (priority actions) - Strengthen the large taxpayers’ office. - Make the medium-size taxpayers’ office operational, including allocating adequate office space and increasing the number of medium-size taxpayers. - Adopt and implement a function-based organizational structure for a more efficient tax department. - Promote E-declaration and establish an E-payment system. - Strengthen customs controls and expand use of IT in customs administration. - Expand the tax base, considerably reduce tax expenditures, and improve and streamline the tax system. - VAT study: - Authorities preparing a study on adoption of the VAT to be completed by December 2013 with FAD technical assistance; LEG assisting with VAT law drafting to be included in new general tax code. - Revenue target: measures critical for achieving authorities' target of increasing domestic revenue to 15 percent of GDP by FY2017. ### Public investment, PFM, and debt management - Public investment management: - Task force of local and international experts to review the investment program to include only projects ready to be financed. - Strengthen units within line ministries for project evaluation and execution; hire technical experts; improve control systems and information systems. - Select and prioritize projects based on rigorous economic cost-benefit analyses. - PFM progress: - Advancing towards a Treasury Single Account (TSA); opening of government central account at BRH and signed agreement between MEF and BRH to accelerate migration to a TSA by end-September 2014. - Creation of new accounting posts and training of accountants; continued procurement reforms. - Financing FY2014 deficit: - Issue short-term T-Bills: G4.6 billion new issuance plus roll over previously issued T-bills of G2.7 billion. - Need close coordination between MEF and BRH and further strengthening of debt management. - Use PetroCaribe resources only for growth-enhancing investment projects to preserve debt sustainability. ### Monetary, exchange rate, and financial sector issues - Monetary policy and inflation: - BRH will monitor inflationary pressures and use available tools (central bank bills, T-bills issuance, adjust policy rate) as needed. - Staff emphasized maintaining low inflation as highest priority and improving monetary transmission and BRH modeling/forecasting capacity. - Exchange rate and FX market: - Authorities agreed gourde should adjust to fundamentals; BRH will intervene only to ensure smooth adjustment and limit excess volatility. - Move cautiously toward single-price foreign exchange auctions by increasing participants; staff supports technical assistance. - Financial sector reforms: - Credit growth brisk but intermediation and access remain low. - Urgent legal reforms: insurance supervision, financial cooperatives law, microfinance law, secured transactions framework. - Continue implementing 2008 FSAP recommendations and improve supervision and data collection. ### Program monitoring, benchmarks, and capacity - ECF implementation record: - Since July 2010, authorities have consistently met all performance criteria and implemented 23 out of 28 structural benchmarks (often with delays); continuous structural benchmarks met. - Proposed new structural benchmarks: - Set up a task force to review public investment framework. - Allocate office space to medium-sized taxpayer unit staff. - Access and timing: - Remaining access under the ECF (SDR 4.914) to be phased equally into three purchases with test dates at end-March 2013, end-September 2013, and end-March 2014. - Capacity to repay and safeguards: - Haiti’s capacity to repay the Fund is adequate. - Implementation of the 2010 update safeguards assessment continues with delays. - Completion of FY2012 audit of BRH underway; BRH intends to publish audited financial statements by end-July 2013. - Staff urged acceleration of IFRS adoption, establishment of a special committee to monitor implementation, reconstitution of Investment Committee, and appointment of a compliance officer for foreign reserve policy. ### Key macroeconomic and fiscal figures (selected from tables and projections) - Real GDP growth: 3.4 percent (FY2012/13 projection), 4.5 percent (FY2013/14 projection). - Consumer prices (end-of-period): 6.0 percent (FY2012/13 projection), 5.0 percent (FY2013/14 projection). - Overall Fiscal Balance (excluding grants and externally-financed projects): -6.1 percent (FY2012/13 programmed), -7.0 percent (FY2013/14 projected). - Overall Fiscal Balance: -5.3 percent (FY2012/13 programmed), -6.9 percent (FY2013/14 projected). - External current account balance (excluding official grants): -17.7 percent (FY2012/13 programmed), -14.3 percent (FY2013/14 projected). - External current account balance (including official grants): -5.6 percent (FY2012/13 programmed), -5.7 percent (FY2013/14 projected). - Liquid gross reserves (months of imports of the following year): 5.5 (FY2012/13 programmed), 4.7 (FY2013/14 projected). - Total government debt (end-of-period): 20.4 percent (FY2012/13 programmed), 24.4 percent (FY2013/14 projected). - Nominal GDP (2011): US$7.4 billion. - Population (2009): 9.9 million. - Balance of payments (overall balance, selected): 1,028; 167; 272; -290; -290; -259.7; -74.1; -81.7; -109.2 (millions of U.S. dollars, selected). - Net international reserves (BRH, end-March 2013): NIR = 1,151.8 (millions of U.S. dollars); Gross Foreign Exchange Reserves: 2,193.0; Gross Liabilities: 282.9. ### Technical definitions, adjustors, and reporting commitments (selected TMU highlights) - NIR measurement components (change cumulative from end-September 2009): change in BRH net foreign assets; minus change in FX deposits of commercial banks at BRH; minus change in stock of project accounts; minus change in stock of Special Accounts in dollars and euros and seized values; plus change in SDR allocation. - Program exchange rate for NDA monitoring: G40.0 per U.S. dollar for the period June 2010 - September 2013. - PetroCaribe-related funds: - Outstanding balance as of March 2013: 293 million dollars held at the BNC state bank. - Interim fiscal treatment: inflows channeled through central government and treated as direct external debt and budget support loans until binational company operational. - Non-concessional public sector external debt: - Ceiling set at zero continuously throughout the program period for contracting and guaranteeing new non-concessional debt denominated in foreign currency with original maturities ≥ one year. - Concessionality threshold: grant element of at least 35 percent. - Arrears criteria: - Zero accumulation of external arrears monitored continuously. - Domestic arrears definition includes bills unpaid within 90 days, wages unpaid by 30th of following month, unpaid interest/principal 30 days after due date. - Reporting commitments: - Daily: exchange rate. - Weekly (preliminary/final lags specified): stock of BRH bonds; deposits at commercial banks (gourdes and U.S. dollars); credit to private sector; credit to central government and public sector (net); currency in circulation; base money; FX inflows/outflows; volume of FX transactions; gross international reserves; net international reserves in specified table format. - Monthly (maximum 30-day lag for final data unless specified): Table 10R and Table 20R from BRH; project accounts by donor; Tableau des Operations Financières de l’Etat; TOFE underlying tables; external debt tables; revenue collection reports; PetroCaribe/ALBA-related deposit balances at commercial banks and BRH. - Quarterly: report on poverty-reducing expenditures (maximum 30-day lag). ### Financial intermediation, safeguards, AML/CFT, and legal reforms - BRH commitments: - Strengthen capacity to monitor systemic risks and financial stability issues. - Publish FY2012 audited financial statement of BRH by end-July 2013. - Adopt IFRS and establish special committee to monitor implementation; reconstitute Investment Committee and appoint compliance officer for reserve investment guidelines. - Legal reforms to be submitted to Parliament: - Legal framework for operation and supervision of insurance companies. - Law on Financial Cooperatives. - Law for microfinance institutions. - Legal framework for secured transactions. - AML/CFT: - Draft law on AML/CFT approved by the Senate and under discussion in the Chamber of Deputies; aligns with CFATF standards. - Central Bank issued decisions/guidelines to strengthen customer identification and prevent money laundering and terrorist financing. - Safeguards follow-up: - Continue implementing recommendations of January 2010 Safeguards assessment follow-up; improve reliability and timeliness of BRH external audits and reserve accounting. *Source: IMF staff report text and accompanying statistical tables.* ### EXECUTIVE SUMMARY ### EXECUTIVE SUMMARY ### Background and recent performance - Growth remained modest due largely to long-standing frail capacity, weather-related shocks, and structural weaknesses. - Inflation remained in the mid-single digits: - Inflation peaked at 7.7 percent (y/y) at end-March 2013 and declined to 7.3 percent in May 2013. - International reserves remained about six months of imports at end-May 2013. - Fiscal performance in the first half of the year was weaker than budgeted, mostly on account of lower revenue collection: - Domestic revenues over the first half of FY2013 were about G4.2 billion (1.2 percent of GDP) below projections. - In response, the authorities reduced non-priority current spending by about G2 billion. - Exchange rate and monetary developments: - The gourde depreciated against the U.S. dollar by 3.5 percent between October 2012 and June 2013. - BRH policy rates remained unchanged since January 2011. - BRH raised banks' reserve requirement ratios on local currency liabilities cumulatively by 6 percentage points (to 35 percent) and on foreign currency liabilities by 5 percentage points (to 39 percent) in February-March 2013. - BRH intervened in the foreign exchange market offering about $100 million between October 2012 and May 2013, versus $44 million during the same period the year before. - Banking sector: - Total credit to the private sector grew by 24.1 percent at end-May 2013 (y/y). - Banks had an average capital adequacy ratio of 16 percent at end March 2013 (regulatory minimum 12 percent). - Non-performing loans remained low. ### Program status - Arrangement under the Extended Credit Facility (ECF): - Amount: SDR 40.95 million (50 percent of quota). - Approved on July 21, 2010; would expire on August 30, 2013. - Program implementation is broadly satisfactory. - Performance through end-March 2013: - All end-March 2013 performance criteria were met. - Two indicative targets were missed: BRH net credit to the Government and poverty-related spending. - All five relevant structural benchmarks through end-March 2013 remain to be fully implemented. - Authorities requested a one-year extension of the ECF arrangement (to August 29, 2014) to consolidate gains and complete key reforms, particularly in the fiscal area. Staff supports this request. ### Structural benchmarks (status through end-March 2013) - Strengthen the debt unit with fully operational middle and back office functions; prepare annual debt sustainability analyses. - Timing: End-March 2013. - Status: Still pending the approval by Parliament of the organic law on the reorganization of the Ministry of Economy and Finance (MEF). - Submit to Parliament a public debt law establishing a legal and institutional framework for public debt management. - Timing: End-March 2013. - Status: Approved by the Cabinet but not yet submitted to Parliament. The law was shared with the IMF and is in line with international standards. - Reduce the number of domestically-funded imprest accounts to three by ministry or institution; deploy network of public accounting offices at line ministries level; gradually grant signature authority to public accountants appointed by the MEF. - Timing: End-March 2013. - Status: Bank accounts have been significantly reduced but not yet to three. Network of public accountants is being deployed, starting with the MEF (pilot); opening of accounting posts constrained by lack of office space. - Roll out general ledger (GL) software in all ministries; start to record project and imprest account expenditures when effectively paid. - Timing: End-March 2013. - Status: World Bank financing to update the software was recently secured and the software has been installed in the MEF. Roll-out not completed in other ministries. - Establish unconstrained single-price foreign exchange auctions. - Timing: End-September 2012. - Status: Given lack of competition, authorities aim to start by expanding number of participants in the FX market. ### Policy discussions and priorities - Main policy priorities agreed between authorities and staff: - Increase domestic revenue and rationalize current expenditure to generate additional fiscal space for infrastructure and poverty-related spending. - Tackle impediments to public investment by improving public financial management and economic governance. - Strengthen the monetary policy transmission mechanism by reducing excess liquidity and deepening financial intermediation. - Discussions focused on macroeconomic policy stance for remainder of FY2013 and policies/structural reforms for FY2014 to ensure medium-term external sustainability. ### Macroeconomic outlook and risks - FY2013 outlook (revised): - Real GDP growth for FY2013 revised to 3.4 percent (from 6.5 percent in the Fifth review). - End-year inflation revised to 6 percent (from 5 percent). - Overall balance will swing to a deficit of $290 million in FY2013 (versus a surplus of $272 million in FY2012). - FY2014 projections: - Real GDP growth projected to pick up to 4.5 percent. - Inflation projected to recede to 5 percent in FY2014 with appropriate policies. - Gross reserves projected to decline slightly below 5 months of imports at end-September 2014. - Key risks: - Domestic: heightened political tensions, lower revenue collection, continued vulnerability to natural disasters, weak execution of public investment, delays in reform agenda. - External: heavy exposure to a slowdown in global growth through remittances, trade, and official transfers. - Haiti’s debt continues to be assessed as high risk given narrow export base. ### Fiscal policy and reforms (FY2013–FY2014) - FY2013 fiscal adjustments and outcome: - Revenue shortfall of 2.3 percent of GDP will be offset by lower non-priority current spending (0.7 percent of GDP) and domestically-financed capital spending (1.8 percent of GDP). - Initial annual revenue target of G52 billion judged unrealistic; both parties concurred authorities could collect G44 billion for the year (12.3 percent of GDP). - Budget support projected at G2.6 billion (or $60 million), versus G3.5 billion (or $85 million) initially anticipated. - Adjustments will lead to a deficit of G19.6 billion, closely in line with the deficit initially budgeted. - FY2014 budget highlights: - Overall deficit targeted at 6.9 percent of GDP. - Domestic revenue projected to increase by G6.6 billion (0.7 percent of GDP), mostly from higher petroleum product revenue (G4 billion) and improved revenue administration. - Budget support projected to drop to $45 million (0.5 percent of GDP) from $60 million (0.7 percent of GDP) in FY2013. - Current spending projected at 11.5 percent of GDP. - Wage bill projected to increase by about 13 percent, from G21 billion in FY2013 to G23.7 billion in FY2014 (increase of G2.8 billion), largely due to reclassification of items from subsidies and transfers (G2.5 billion). - Staff recommended future wage-bill increases be determined within a medium-term public administration modernization strategy. - Domestically-financed spending projected at 8.5 percent of GDP in FY2014 (from 7.4 percent in FY2013), driven by inclusion of G2.2 billion in education spending financed by the National Education Fund (FNE) and higher PCDR-related spending. - Financing of FY2014 deficit: - Domestic financing 2.4 percent of GDP; external financing 4.5 percent of GDP (including PetroCaribe resources 4.3 percent of GDP). - Domestic financing includes drawdown of government and PCDR deposits at the central bank and net placements with commercial banks. - Public debt: - Total government gross debt projected to reach 24.7 percent of GDP. - Government debt net of PetroCaribe deposits projected at 20.8 percent of GDP. - Total government debt-to-GDP (medium-term fiscal anchor) will remain below 30 percent (the pre-earthquake level). ### Summary table excerpts and key macro figures (as presented) - Real GDP growth: 3.4 percent (FY2012/13 projection), 4.5 percent (FY2013/14 projection). - Consumer prices (end-of-period): 6.0 percent (FY2012/13 projection), 5.0 percent (FY2013/14 projection). - Overall Fiscal Balance (excluding grants and externally-financed projects): -6.1 percent (FY2012/13 programmed), -7.0 percent (FY2013/14 projected). - Overall Fiscal Balance: -5.3 percent (FY2012/13 programmed), -6.9 percent (FY2013/14 projected). - External current account balance (excluding official grants): -17.7 percent (FY2012/13 programmed), -14.3 percent (FY2013/14 projected). - External current account balance (including official grants): -5.6 percent (FY2012/13 programmed), -5.7 percent (FY2013/14 projected). - Liquid gross reserves in months of imports of the following year: 5.5 (FY2012/13 programmed), 4.7 (FY2013/14 projected). - Total government debt (end-of-period): 20.4 percent (FY2012/13 programmed), 24.4 percent (FY2013/14 projected). *IMF staff report: EXECUTIVE SUMMARY (Discussions held in Port au-Prince during May 29–June 6, 2013; approved July 18, 2013).* ### Box 1. Haiti: Reclassification of Expenditure Items for the 2014 Budget ### Box 1. Haiti: Reclassification of Expenditure Items for the 2014 Budget ### Reclassification details - Main reclassifications to the wage bill: - G1.3 billion of staff compensation from autonomous public agencies, previously recorded as subsidies and transfers. - The compensation of 5,700 teachers, corresponding to G200 million. - In-kind allowances received by civil servants, previously recorded as goods and services. - Main reclassifications to goods and services: - G1.5 billion of spending of autonomous agencies, previously recorded as subsidies and transfers. - G1.1 billion of spending previously recorded in capital spending. - Within transparency efforts, the authorities now specifically itemize the National Fund for Education (G2 billion) in the budget. ### Budgetary impacts and key figures - These changes bring: - Wage bill to about 6.1 percent of GDP from 5.8 percent in 2013. - Goods and services to 3.6 percent of GDP from 3.2 percent in 2013. - FY2013–FY2014 numerical reclassification and budget items (millions of gourdes): - Wage bill: 20,923 (FY2013) → 23,700 (FY2014) - Hiring in police: 735 - Education: 200 - Health: 200 - Reclassification of autonomous agency wage bill from subsidies: 1,328 - Other: 314 - Goods and services: 11,465 (FY2013) → 13,820 (FY2014) - Election: 244 - Reclassification of autonomous agency current expenditure from subsidies: 1,500 - Reclassification expenditure from capital spending: 1,142 ### Petroleum pricing, revenue implications, and Box 2 summary - Policy and revenue effects: - Domestic petroleum prices fixed since March 2011; fees and taxes on petroleum products adjusted downward to keep pump prices unchanged. - Recent international oil prices triggered revenue losses that could reach 1.8 percent of GDP in FY2013. - Planned increase in domestic fuel prices coupled with projected decline in international prices expected to enable collection of at least G4 billion in FY2014. - Without adjustments and if international oil prices remain at current level, total cost to the budget could reach G6.5 billion (1.8 percent of GDP) for the full year; of this, about G5.5 is revenue forgone and the remainder is actual subsidies to the budget. - Box 2: Domestic Oil Price Mechanism — pump prices fixed since March 2011: - G200 (US$4.76) per gallon of Gasoline 95 - G195 (US$4.64) per gallon of Gasoline 91 - G162 (US$3.79) per gallon of diesel - G161 (US$3.84) per gallon of jet fuel (kerosene) - First-semester petroleum product revenues: - Actual revenue: G0.7 billion - Potential without the price mechanism: G2.9 billion - Budget envisaged: G2 billion ### Fiscal reforms and revenue measures - Priority measures to preserve fiscal sustainability and increase revenue collection: - Strengthen the large taxpayers’ office. - Make the medium-size taxpayers’ office operational, including allocating adequate office space to staff and increasing the number of medium-size taxpayers. - Adopt and implement a function-based organizational structure for a more efficient tax department. - Promote the use of E-declaration and establish an E-payment system. - Strengthen customs controls, including greater use of IT in customs administration. - Expand the tax base, considerably reduce tax expenditures, and improve and streamline the tax system. - VAT study and legislative work: - Authorities preparing a study on the adoption of the VAT to be completed by December 2013 with FAD technical assistance; the study will inform exemptions, tax rate, and implementation procedure. - LEG is providing technical assistance in drafting the VAT law to be included in the new general tax code. - Revenue target: - These revenue measures are included in the medium-term strategy and are critical for achieving the authorities' target of an increase in domestic revenue to 15 percent of GDP by FY2017. ### Public investment, PFM, and debt management - Public investment management: - Task force of local and international experts to review the investment program to differentiate projects ready to be financed from early-stage projects; only projects ready to be executed should be included in the budget. - Strengthen units within line ministries responsible for project evaluation and execution (including hiring technical experts), enhance control systems, and promote a more dynamic information system. - Need to select and prioritize projects based on rigorous economic cost-benefit analyses. - Public financial management (PFM) progress: - Advancing towards a Treasury Single Account (TSA); opening of the government central account at the BRH and signing of agreement between the finance ministry and BRH to help accelerate migration to a TSA by end-September 2014. - Creation of new accounting posts and training of accountants. - Continued reforms in procurement to ensure greater transparency, accountability, and efficiency. - Debt management and financing of 2014 deficit: - To finance the 2014 overall fiscal deficit, the government will need to issue short-term T-Bills: G4.6 billion new issuance plus roll over previously issued T-bills of G2.7 billion. - Need for close coordination between the MEF and the BRH and further strengthening of debt management. - Importance of using PetroCaribe resources only for growth-enhancing investment projects to preserve debt sustainability. ### Monetary, exchange rate, and financial sector issues - Monetary policy and inflation: - BRH will monitor inflationary pressures and use available monetary policy tools rather than rely solely on the required reserve ratio; authorities prepared to increase central bank bills and T-bills issuance or adjust the policy rate if necessary. - Staff emphasized maintaining low inflation as the highest priority and urged continued enhancement of the monetary transmission mechanism and BRH modeling and forecasting capacity. - Exchange rate flexibility and foreign exchange market: - Authorities agreed in principle that the gourde should adjust to underlying fundamentals and BRH will intervene only to ensure smooth adjustment and limit excess volatility. - Need to safeguard foreign exchange reserves and external stability and accelerate structural reforms for competitiveness and exports. - Authorities plan to move cautiously and gradually to single-price foreign exchange auctions by increasing market participants; staff supports technical assistance to improve market functioning. - Financial sector reforms: - Credit has grown briskly, but financial intermediation and access to finance remain low. - Urgent legal reforms: legal framework for operation and supervision of insurance companies, law on financial cooperatives, law for microfinance institutions, and legal framework for secured transactions. - Continue implementing recommendations of the 2008 FSAP and improve supervisory, regulatory frameworks and data collection. ### Program monitoring, benchmarks, and capacity - ECF arrangement extension: - Authorities requested a one-year extension of the ECF arrangement to complete key reforms, particularly in fiscal area. - Since July 2010, authorities have consistently met all PCs and implemented 23 out of 28 structural benchmarks (albeit usually with delays), and continue to meet all continuous structural benchmarks. - Program modalities and monitoring: - Quarterly quantitative indicative targets and semi-annual quantitative performance criteria (PCs) continue to monitor implementation. - Authorities requested discontinuation of monitoring of the fifth benchmark related to move to single-price foreign exchange auctions due to absence of competition; staff supports this request but urged use of technical assistance to improve market functioning and increase participants. - Staff propose adding two new macro-relevant structural benchmarks: - Set up a task force of experts to review the public investment framework. - Allocate office space to staff of the medium-sized taxpayer unit. - Access and timing: - Remaining access under the ECF (SDR 4.914) will be phased equally into three purchases with test dates at end-March 2013, end-September 2013, and end-March 2014. - Capacity to repay and safeguards: - Haiti’s capacity to repay the Fund is adequate. - Implementation of the 2010 update safeguards assessment continues, albeit with delays. - Completion of the FY2012 audit of the central bank is underway and BRH intends to publish audited financial statements by end-July 2013. - Staff urged acceleration of full adoption of IFRS and establishment of a special committee to monitor its implementation; encouraged BRH to reconstitute the Investment Committee and to appoint a compliance officer for foreign reserve policy and investment guidelines. *International Monetary Fund — Box 1. Haiti: Reclassification of Expenditure Items for the 2014 Budget (excerpt).* ### 25. Significant challenges still lie ahead. The key challenge for Haiti is to create the ### Significant challenges still lie ahead. The key challenge for Haiti is to create the ### Macroeconomic priorities and policy challenges - Key challenge: create the conditions for stronger and sustainable growth by maintaining macroeconomic stability and pursuing structural reforms to improve infrastructure and the business climate. - Preserve fiscal and external sustainability in the context of declining foreign assistance. - Promote competitiveness and exports to offset the decline in official transfers and preserve external stability. - Strengthen relations between the legislative and executive branches to expedite economic reforms needed to rekindle growth, create jobs, and reduce poverty. ### Domestic revenue mobilization - Revenue remains well below potential despite recent gains in collection. - Scope for higher yield by: - Broadening the tax base. - Reducing tax expenditure. - Increasing the efficiency of tax and customs administration. - Aligning domestic petroleum prices with international levels will limit forgone revenue. - The authorities’ commitment to reform in this area is encouraging. ### Fuel pricing and social protection - Aligning domestic fuel prices with international levels will be challenging, particularly in the absence of a well-targeted social safety net. - Immediate adjustments in domestic fuel prices will be critical to secure revenue targets and create additional fiscal space for infrastructure and poverty-related spending. - Medium-term phasing-in and sequencing of price increases should consider: - The magnitude of price increases required to eliminate subsidies. - The time needed to develop an effective communication strategy and a social safety net. ### Spending controls and fiscal management - Continued strong spending controls are crucial. - Recent decisive actions to contain non-priority current spending and enhance budget transparency (through reclassification of items) are welcomed. - Careful management of the wage bill is critical to keep fiscal flexibility and create room for infrastructure and poverty-related spending. - Sustained reform efforts in the power sector are essential for fiscal sustainability and growth. ### Public investment framework - Sustaining higher growth depends on forceful actions to improve the public investment framework. - Need to accelerate measures to improve project appraisal, evaluation, implementation, and reporting. - Ensure high quality capital spending through realistic assessment of capacity constraints and improvements in the business climate to promote private sector development. ### Public financial management (PFM) and governance - Strengthening PFM and governance remains critical. - Continue efforts to establish a TSA to improve oversight of all cash flows and strengthen budget control. - Further efforts needed to improve the procurement process and debt management. - Authorities encouraged to swiftly adopt the draft AML/CFT law and ensure that it is in line with the 2012 FATF standard. - Effective implementation will support efforts against tax evasion, corruption, and financial sector abuse. ### Monetary policy stance - The authorities are firmly committed to keeping inflation in the single digits. - The BRH should remain vigilant and be ready to use all available tools if demand pressures or second-round effects from domestic food price shocks arise. - Continue to improve monetary transmission mechanisms. - Intervene in the foreign exchange market only to smooth excess volatility. - Administrative measures should be taken only as a second line of defense after carefully assessing their impact. *Source: IMF staff assessment contained in the provided content unit.* ### 32. Staff supports the authorities’ request for a one year extension and rephasing of ### 32. Staff supports the authorities’ request for a one year extension and rephasing of disbursements, and recommends the completion of the sixth review under the ECF arrangement. ### Program status and staff recommendation - Staff supports the authorities’ request for a one year extension and rephasing of disbursements. - Staff recommends the completion of the sixth review under the ECF arrangement. - Program implementation has been broadly satisfactory although implementation of structural reforms remains slow. - On balance, significant progress has been made and the authorities maintain the commitment and the capacity to implement the program. - The requested one-year extension of the ECF arrangement will help to lock in the gains to date and complete key reforms, particularly in the fiscal area. ### Key macroeconomic indicators and projections - Nominal GDP (2011): US$7.4 billion - Population (2009): 9.9 million - GDP at constant prices (selected entries): -5.4; 5.6; 2.8; 6.5; 3.4; 4.5; 5.2; 5.8; 5.6 - GDP deflator (selected entries): 4.7; 6.8; 7.5; 5.3; 5.3; 3.8; 3.6; 3.2; 2.8 - Consumer prices (period average, selected entries): 4.1; 7.4; 6.8; 6.7; 7.1; 4.4; 4.0; 3.7; 3.4 - Consumer prices (end-of-period, selected entries): 4.7; 10.4; 6.5; 5.0; 6.0; 5.0; 4.0; 3.5; 3.0 ### External sector (selected) - Exports (f.o.b., percent change or values where shown): 2.2; 36.3; 2.2; 0.1; 17.1; 14.8; 11.2; 0.2; 10.0 - Imports (f.o.b., percent change or values where shown): 38.3; 7.3; -12.4; 14.5; 6.7; 3.3; 5.4; 5.4; 5.0 - Real effective exchange rate (end of period; + appreciation): 0.7; 1.6; 4.7; ... ### Money and credit (selected) - Credit to the nonfinancial public sector (net, selected entries): -122.7; -91.7; 229.4; 41.6; -13.2; -23.7; -60.6; -119.4; 435.5; 45.6 - Of which: Net credit to the central government (selected): -104.3; 930.9; 44.7; 0.5; -15.4; -79.1; -289.2; 106.8; 31.1 - Credit to private sector (selected): -5.6; 24.5; 29.8; 21.6; 21.6; 18.0; 17.5; 17.0; 16.5 - Base money (selected): 31.2; 6.0; -3.7; 10.9; 8.9; 8.5; 9.0; 9.2; 8.5 - Broad money (incl. foreign currency deposits, selected): 22.7; 10.4; 6.9; 11.8; 8.0; 7.8; 8.0; 8.1; 7.8 ### Central government fiscal operations (selected) - Overall balance (percent of GDP, selected): 2.4; -3.7; -5.1; -5.3; -5.5; -6.9; -5.4; -4.3; -3.5 - Overall balance (excluding grants and externally-financed projects, selected): -5.0; -4.7; -5.0; -6.1; -6.1; -7.0; -5.3; -4.3; -3.4 - Domestic revenue (percent of GDP, selected): 11.9; 13.1; 12.8; 14.1; 12.3; 13.0; 13.6; 14.0; 14.5 - Grants (percent of GDP, selected): 16.5; 16.8; 10.6; 10.4; 8.4; 6.8; 5.8; 5.1; 4.4 - Expenditures (percent of GDP, selected): 26.0; 33.5; 28.4; 29.8; 26.2; 26.7; 24.8; 23.4; 22.4 - Current expenditures (percent of GDP, selected): 11.3; 11.8; 11.9; 11.3; 10.9; 11.5; 11.3; 11.1; 10.9 - Capital expenditures (percent of GDP, selected): 14.7; 21.7; 16.5; 18.5; 15.3; 15.3; 13.5; 12.4; 11.5 ### Savings, investment, and external balances (selected) - Gross investment (percent of GDP, selected): 25.4; 28.0; 29.1; 29.5; 25.7; 28.6; 27.1; 27.0; 27.0 - Gross national savings (percent of GDP, selected): 12.9; 23.8; 25.1; 23.9; 19.9; 22.9; 21.4; 21.5; 21.7 - External current account balance (including official grants, percent of GDP, selected): -12.5; -4.6; -4.5; -5.6; -5.8; -5.7; -5.7; -5.6; -5.4 - External current account balance (excluding official grants, percent of GDP, selected): -29.8; -24.2; -17.0; -17.7; -16.0; -14.3; -13.3; -12.4; -11.4 ### Public debt and debt service (selected) - External public debt (end-of-period, percent of GDP, selected): 13.2; 8.9; 13.0; 16.8; 17.3; 20.7; 22.8; 24.2; 25.1 - Total government debt (end-of-period, percent of GDP, selected): 17.7; 12.2; 15.4; 20.4; 20.4; 24.5; 27.6; 29.4; 30.3 - External public debt service (percent of exports of goods and nonfactor services, selected): 1.6; 0.6; 0.8; 0.8; 1.5; 1.5; 2.5; 4.1; 5.1; 5.9 ### Balance of payments and reserves (selected) - Overall balance (millions of U.S. dollars, selected): 1,028; 167; 272; -290; -290; -259.7; -74.1; -81.7; -109.2 - Net international reserves (program definition, millions of U.S. dollars, selected): 1,098; 1,178; 1,302; 998; 998; 738; 703; 666; 602 - Liquid gross reserves (millions of U.S. dollars, selected): 1,792; 2,000; 2,284; 2,019; 2,019; 1,759; 1,724; 1,684; 1,614 - Reserves in months of imports of the following year (selected): 5.2; 6.2; 6.8; 5.5; 5.8; 4.7; 4.4; 4.1; 3.8 ### Central government operations (table entries, in millions of gourdes, selected) - Total revenue and grants (selected fiscal entries): 75,004; 86,794; 88,801; 91,786; 76,802; 90,197; 74,254; 77,254 - Domestic revenue (selected): 31,425; 36,459; 38,893; 44,516; 41,970; 52,002; 44,000; 50,642 - Grants (selected): 43,579; 50,335; 49,907; 47,270; 34,831; 38,195; 30,254; 26,612 - Total expenditure (selected): 68,704; 104,100; 99,811; 103,677; 93,424; 109,838; 93,915; 103,976 - Capital expenditure (selected): 38,855; 70,103; 64,579; 66,588; 54,417; 68,300; 54,794; 59,321 - Overall balance (in gourdes, selected): 6,299; -18,984; -11,010; -11,891; -16,623; -19,641; -19,661; -26,722 - Excluding grants (selected): -37,279; -67,641; -60,918; -59,161; -51,454; -57,836; -49,915; -53,334 ### Banking system and financial soundness (selected) - Net foreign assets (in millions of U.S. dollars, selected): 1,606; 1,347; 1,773; 1,592; 1,811; 2,066; 1,786; 1,786; 1,526 - Base money (selected percent change entries): 31.2; 15.2; 6.0; 11.2; 9.0; -3.7; 10.9; 8.9; 8.5 - Credit to the private sector (12-month percentage change, selected): -5.6; 21.6; 24.5; 16.8; 18.6; 29.8; 21.6; 21.6; 18.0 - Broad money (M3, 12-month percentage change, selected): 22.7; 20.3; 10.4; 16.1; 11.2; 6.9; 11.8; 8.0; 7.8 - Commercial Banks' Credit to Private Sector (percent of GDP): 14.6; 15.2; 16.2; 16.3; 17.5; 19.1; 20.8; 21.5; 23.4 ### Financial soundness indicators of individual banks (selected) - Asset volume (in US$ millions, selected dates): 345; 453.6; 3767.5; 3858.0; 3945.0; 4029.9; 4173.7; 4074.2 - Deposit volume (in US$ millions, selected dates): 2985.8; 3316.2; 3394.2; 3475.1; 3469.5; 3487.3; 3376.8 - Regulatory capital to risk-weighted assets (selected): 13.4; 16.5; 16.7; 16.7; 16.8; 16.3; 16.0 - NPLs to gross loans (selected): 5.7; 3.7; 3.6; 3.2; 2.4; 2.4; 2.6 - Return on Assets (ROA, cumulative since beginning of fiscal year, selected): 1.2; 1.4; 1.4; 1.3; 1.5; 1.2; 1.3 - Return on equity (ROE, selected): 18.4; 22.2; 22.2; 21.7; 21.9; 18.2; 20.2 - Foreign currency loans to total loans (net, selected): 60.1; 55.7; 53.8; 51.8; 51.8; 48.0; 47.8 - Foreign currency deposits to total deposits (selected): 44.1; 62.3; 63.9; 64.5; 62.9; 62.8; 59.1 ### External vulnerability and debt indicators (selected) - Total external public debt (percent of GDP, selected): 19.0; 13.2; 8.9; 13.0; 17.3 - Total external public debt (percent of exports, selected): 133.7; 107.6; 64.6; 98.3; 117.2 - External debt service (percent of exports, selected): 3.9; 1.6; 0.6; 0.8; 1.5 - Liquid gross reserves (millions of US dollars, selected): 947.5; 1,792.0; 1,999.7; 2,284.1; 2,019.1 - Reserves (in months of imports of the following year, selected): 2.8; 5.2; 6.2; 6.8; 5.8 ### Fund financing, reviews, and disbursement schedule (selected) - ECF arrangement disbursements/reviews (selected approvals and completions): - SDR 8,190,000: July 21, 2010 — Executive Board approval of the three-year arrangement — Completed - SDR 8,190,000: January 15, 2011 — Observance of performance criteria for September 2010 and completion of the first review under the ECF arrangement — Completed - SDR 4,914,000: July 15, 2011 — Observance of performance criteria for March 2011 and completion of the second review under the ECF arrangement — Completed - SDR 4,914,000: January 15, 2012 — Observance of performance criteria for September 2011 and completion of the third review under the ECF arrangement — Completed - SDR 4,914,000: July 15, 2012 — Observance of performance criteria for March 2012 and completion of the fourth review under the ECF arrangement — Completed - SDR 4,914,000: January 15, 2013 — Observance of performance criteria for September 2012 and completion of the fifth review under the ECF arrangement — Completed - SDR 1,638,000: July 15, 2013 — Observance of performance criteria for March 2013 and completion of the sixth review under the ECF arrangement. - Table entries for projected Fund obligations and outstanding Fund credit (selected): - Total obligations based on existing and prospective credit (in millions of SDRs, selected): 0.0; 0.0; 0.1; 1.7; 4.4; 6.8; 7.8; 8.3; 6.6; 4.0; 1.5 - Total obligations based on existing and prospective credit (in millions of U.S. dollars, selected): 0.0; 0.0; 0.2; 2.6; 6.5; 10.2; 11.7; 12.4; 9.9; 5.9; 2.2 - Outstanding Fund credit (end of period, in millions of SDRs, selected): 41.0; 41.0; 41.0; 39.4; 35.1; 28.4; 20.2; 12.0; 5.5; 1.5; 0.1 - Outstanding Fund credit (end of period, in millions of U.S. dollars, selected): 62.1; 62.0; 61.8; 59.2; 52.7; 42.6; 31.1; 18.8; 8.9; 3.0; 0.8 *Source: IMF staff report text and accompanying statistical tables.* ### APPENDIX I: Letter of Intent ### APPENDIX I: Letter of Intent ### Program status and requests - The economy continued to recover but less rapidly than expected owing to weather-related shocks, shortfalls in capital expenditure, and delays in the disbursement of external grants. - Macroeconomic stability: inflation in the mid-single digits; official reserves at about 6 months of imports at end-May 2013. - Implementation of the ECF-supported program remains broadly on track. All end-March 2013 performance criteria and indicative targets were met, except: - end-March indicative target on BRH net credit to the Government (not met partly due to a shortfall in budget support); - end-March indicative target on poverty-related spending (missed because some resources were redirected to sectors hit by Hurricanes Isaac and Sandy). - Requests to the IMF: - Completion of the sixth review and approval of the sixth disbursement for an amount equivalent to SDR 1.638 million. - Extend the ECF to August 29, 2014. - Set performance criteria for September 30, 2013 and March 30, 2014. - Rephase the remaining access under the ECF (SDR 4.914) equally into three purchases with tests at end-March 2013, end-September 2013, and end-March 2014. ### Recent macroeconomic developments and outlook - FY2013 performance and outlook: - Real GDP growth revised down to 3.4 percent in FY2013 (from 6.5 percent envisaged at the fifth review). - Agricultural output (about 20 percent of GDP) will recover more slowly than previously projected. - Inflation: 7.3 percent at end-May 2013; year-on-year consumer price inflation expected to be around 6 percent (policy aim). - Domestic revenue was G22 million, 42 percent of the total amount budgeted for the whole year. - External position: official reserves about 6 months of imports at end-May 2013. - Monetary policy: reserve requirement ratios raised by 5 percentage points in February 2013 to a maximum of 34 and 39 percent on liabilities in local and foreign currency, respectively; in March 2013 the reserve requirement on gourde deposits raised to 35 percent. - Credit to the private sector continued to increase rapidly; broad money growth remained moderate and below the program target. - FY2014 outlook and risks: - Real GDP growth expected to pick up to 4.5 percent in FY2014, driven by agriculture and construction. - Consumer price inflation expected to be around 5 percent (in FY2014 projection). - Current account deficit projected at 5.8 percent of GDP (FY2013 outlook paragraph). - Gross official reserves expected to fall to 5.8 months of imports (FY2013 outlook paragraph). - Risks: political tensions from upcoming elections, vulnerability to natural disasters, concentrated export base (textiles to the US) amid slow recovery in developed economies. ### Fiscal policy and budget for FY2013 and FY2014 - FY2013 fiscal adjustments: - Revised budget deficit target for 2013 capped at 5.5 percent of GDP. - Projected end-year revenue shortfall of G8 billion. - Measures: - Reduce non-priority current spending by about G2.4 billion. - Revise down domestically-financed capital spending by about G6.5 billion based on first-semester execution. - Revenue measures and expectations: - Urgent measures to improve border controls and enforcement of income and sales tax collection. - Expectation to increase average monthly revenue collection to almost G3.8 billion (as opposed to the G3.5 billion collected on average from October to March) during the second half of the year. - Domestic revenue projected at G44 billion for the year versus an initial budget target of G52 billion. - FY2014 fiscal framework: - Overall budget deficit targeted at 6.9 percent of GDP (from 5.5 percent in FY2013). - Domestic revenue: G50.6 billion in the prudent baseline scenario (13 percent of GDP). - Current expenditure: G44.5 billion (11.5 percent of GDP). - Wage bill: G23.7 billion, a 13.3 percent increase over FY2013. Components include: - Transfer into the wage bill of compensation from autonomous agencies: G1.3 billion. - Inclusion of 5,700 teachers: G200 million. - Hiring of new police officers: G335 million. - Hiring of medical personnel: G200 million. - Reclassifications to enhance transparency: - Reclassified spending of autonomous agencies from subsidies into goods and services: G1.5 billion. - Reclassified some outlays from capital spending into current spending: G1.1 billion. - Budgeted subsidy to the electricity company (EDH): G2.5 billion. - Poverty-related spending increased to about G15.5 billion in FY2014. - Domestically-financed spending: 8.5 percent of GDP, of which 4.4 percent of GDP (G18.7 billion) will be financed from treasury resources (including G2 billion from the National Education Fund and G3 billion from PCDR). - Financing: deficit financed mostly by external resources (about 4.5 percent of GDP) and treasury bills (about 1.2 percent of GDP). - Petroleum pricing: intention to develop a medium term plan to gradually close the wedge between domestic and international petroleum prices; increase domestic prices in short-run to limit revenue forgone and secure the level of oil revenue envisaged in the FY2014 budget; launch a communication campaign; design well-targeted social safety nets. ### Structural reforms and public financial management - Treasury Single Account (TSA) and public accounting: - Important steps toward establishing a TSA: creation of new accounting posts; training of accountants; introduction of the TSA in a first wave of ministries almost ready. - Prior actions completed: opened the Central Account related to the TSA at the BRH; signed and implemented the agreement between the MEF and BRH on the modalities and functioning of the TSA. - Commitments: - Complete training of new accountants and roll-over of GL software in accounting posts. - Fully implement the agreement on treasury debt signed in last December. - Develop by end-September 2013 an IT tool to help reconciliation of treasury accounts and government financial accounts at the BRH. - Structural benchmark: reduction of the number of domestically-funded imprest accounts to three per ministry or institution (structural benchmark for end-March 2014). - Full deployment of the network of public accounting offices at line ministry level and gradual granting of signature authority to public accountants appointed by the MEF. - Extension of the TSA to all ministries. - Identified and closed more than 300 dormant government accounts in the banking system; MEF officially installed its public accountant in January 2013. - Revenue administration and tax policy: - Measures to strengthen revenue collection and administration: - Strengthen the large taxpayers office; implement an action plan and weekly performance reports for the large taxpayers unit (collects 80 percent of DGI revenues). - Reinforce the large taxpayers unit by appointing three permanent high-level experts. - Provide offices for newly-created units in charge of medium-sized taxpayers and NGOs (end-September 2013 structural benchmark). - Enforce tax payments and controls at customs. - Begin development of an IT master plan and implement an integrated IT system for the tax department. - Tax policy measures: - Start rationalizing exemptions, improving and streamlining the tax system, and accelerating transformation of the current turnover tax into a full VAT system. - Set up a working group to prepare the preliminary draft of the new tax code. - Reorganization and debt management: - New organic law of the Directorate General of the Budget and the Directorate General of the Treasury and Public Accounting submitted to parliament to improve the public investment framework and transition toward result-based public management. - Start implementing these laws once passed to strengthen the debt unit with fully operational middle and back office functions (end-December 2013 structural benchmark). - Prior action: submission of the new debt law to parliament. - Public investment framework and procurement: - Plans to improve execution rate and quality of capital spending: - Review all projects in the public investment program to distinguish ready-to-finance projects from those still in early stages. - Encourage ministries and public entities to submit draft procurement and execution plans with project proposals prior to inclusion in the budget. - Request technical assistance to set up and strengthen project and program evaluation units (UEPs) in main spending ministries. - Continue collaboration with partners to improve and accelerate procurement processes. ### Financial sector and monetary policy - Principal objective of monetary policy: support price stability amid continued rapid credit growth. - BRH stands ready to use all available tools, including T-bills and interest rates, to adjust policy if needed. - Commitments to enhance monetary policy framework: - Improve liquidity management, strengthen market-based operations, and develop macroprudential regulatory mechanisms. - Deepen the domestic T-bill market to provide an additional tool for managing liquidity. - Exchange rate policy: - Commitment to a flexible exchange rate. - Improve functioning of the foreign exchange market by allowing more participants and promoting development of the interbank foreign exchange market. - BRH will intervene only to smooth out excess volatility. *Source: APPENDIX I: Letter of Intent (July 9, 2013) and attached Memorandum of Economic and Financial Policies–Update.* ### 19. We will continue to promote financial intermediation while safeguarding financial ### _cr13260 - 19. We will continue to promote financial intermediation while safeguarding financial ### Financial intermediation and financial stability - The BRH will continue to strengthen its capacity to monitoring systemic risks and financial stability issues. - In line with the recently conducted Financial Sector Assessment (IMF Country Report No. 13/90), the authorities will submit to Parliament: - the legal framework for the operation and supervision of insurance companies. - the law on Financial Cooperatives and the law for microfinance institutions. - the legal framework for secured transactions. - The FY2012 audited financial statement of the BRH will be published by end-July 2013. - Work underway includes: - adopt the IFRS, including the establishment of a special committee to monitor its implementation. - reconstitute the Investment Committee as an independent oversight body and appoint a compliance officer to monitor observation of investment guidelines. ### Other reforms to improve the business environment and resilience - The Ministry of Commerce and Industry is preparing measures to reduce the cost and alleviate the burden of doing business and to put in place an institutional framework to attract foreign investments. - Continued commitments: - continue export promotion and diversification and investment in tourism to maintain external sustainability. - strengthen national risk and disaster management systems in cooperation with partners, including the World Bank. ### Safeguards, AML/CFT, and related legal reforms - AML/CFT: - The draft law on AML/CFT was approved by the Senate and is being discussed in the Chamber of Deputies; the law enhances compliance with Caribbean Financial Action Task Force (CFATF) standards. - Progress on critical aspects: combating corruption, countering tax evasion, preventing financial sector abuse, and improving identification of citizens. - The Central Bank published two decisions and guidelines aligned with the new law on banks and other financial institutions (passed by Parliament on May 14th, 2012) to help financial institutions properly identify customers and fund beneficiaries and prevent money laundering and financing of terrorism. - Safeguards assessment follow-up: - Continue to implement recommendations of the January 2010 Safeguards assessment follow-up mission. - Adopt measures to improve reliability and timeliness of BRH external audits and strengthen reserve accounting (completion of the audit of foreign reserves to confirm end-September 2009 and end-September 2010 unencumbered reserves noted in prior actions). ### Program monitoring and review schedule - Program monitoring: - Monitoring will use definitions, data sources, and frequency set out in the revised TMU. - The government will make available to Fund staff all data appropriately reconciled and on a timely basis as specified in the TMU. - Table 1 shows quantitative performance criteria for 2012/13 and 2013/2014; Tables 2a–2c list structural benchmarks and their status. - Reviews under the ECF arrangement: - The seventh review, assessing end-September 2013 performance criteria, is expected to be completed by mid-January 2014. - The eighth review, assessing end-March 2014 performance criteria, is expected to be completed by mid-July 2014. ### Quantitative framework and selected definitions (TMU highlights) - TMU coverage period: July 1, 2010 through the end of the arrangement (Tables 1 and 2 of the MEFP). - Institutional definitions: - Central government: presidency, prime minister’s office, parliament, national courts, treasury, line ministries and “organismes déconcentrés”; includes expenditures financed directly by foreign donors through ministerial accounts (comptes courants). - Non-financial public sector: central government plus non-budgetary autonomous organizations, local governments and public sector enterprises (government controlling stake > 50 percent). - Total public sector: non-financial public sector plus the Bank of the Republic of Haiti (BRH). - Key quantitative definitions: - Net BRH credit to the non-financial public sector = net central bank credit to the central government + net central bank credit to the rest of the non-financial public sector. - Change in net BRH credit to the central government measured using: change in net domestic credit to the central government from BRH according to Table 10R of the BRH, excluding the stock of project accounts (“Comptes de projets”), Special Accounts (“Comptes spéciaux”), and seized values (“Valeurs saisies UCREF”) included in Table 10R. - Change in net central bank credit to the rest of the non-financial public sector measured as change in “créances nettes sur le secteur public” minus change in “créances nettes sur l'état” (Table 10R). - Changes measured on a cumulative basis from the stock at end September 2009. - Net domestic financing to the central government comprises the change in net banking sector credit to the central government plus the change in nonbank financing (including amortization, counterpart funds, and net issuance of Treasury bills and other government securities to non-banks). - Net domestic banking sector credit to the central government measured as change in BRH net domestic credit (Table 10R) plus change in domestic banks’ net domestic credit to the central government (Table 20R), which includes net issuance of treasury bills and other government securities for financing; securities issued for BRH recapitalization are excluded. - Project accounts, Special Accounts, and seized values are excluded from relevant credit change definitions. - Program exchange rate for monitoring NDA: G40.0 per U.S. dollar for the period June 2010 - September 2013 (NDA defined as monetary base minus program NIR in gourde terms). ### Structural benchmarks, implementation status, and timelines - Prior actions and completed items: - Completion of the audit of foreign reserves to confirm end-September 2009 and end-September 2010 unencumbered reserves — Completed (End-September 2010). - Publish regular reports on poverty-reducing spending on the MEF website — Met (ongoing quarterly publication). - Publish central government monthly transfers to investment project accounts, project by project, including PetroCaribe projects — Met with delay. - Publish central government monthly transfers by beneficiary entity — Met. - Prepare monthly consolidated Treasury balances — Met with delay. - Prepare inventory of all government and donor accounts at the BRH and BNC — Met with delay. - Prepare quarterly reports with monthly data on tax system performance including cost of exemptions and revenue collected in provinces — Met. - Publish a quarterly report identifying all fiscal expenditure by beneficiary sectors — Met. - Set up working group to prepare study to simplify tax system and improve tax productivity — Met with delay. - Completion and publication of externally audited financial statements for 2008/09 — Met. - Adoption of a global reserves management policy by the investment committee — Met. - Identify and consolidate all sources of transfers to EDH in regular monthly reports — Met. - Launch bids for selection and hiring of international consulting agency to assist UCP and other project implementation units — Met. - Sign and make operational the TSA agreement between the MEF and BRH — Met (prior action). - Open a government central account at the BRH — Met (prior action). - Submit to Parliament a public debt law establishing legal and institutional framework for public debt management — Met (prior action). - Outstanding / reprogrammed benchmarks and revised timings: - Strengthen the debt unit with fully operational middle and back office functions; preparation of annual debt sustainability analyses — reprogrammed to End-December 2013 (reset from End-March 2013). - Roll out GL-software in all ministries and start recording projects and imprest accounts expenditure when effectively paid rather than at replenishment — End-December 2013. - Set up a task force of experts to review the public investment framework — End-December 2013. - Reduce the number of domestically-funded imprest accounts to three by ministry/institution and deploy network of public accounting offices at line ministries and gradually grant signature authority to appointed public accountants — End-March 2014 (reset from End-March 2013). - Allocate offices to the medium-sized taxpayer unit — End-September 2013. - Several measures originally timed for End-March 2012 and End-September 2012 were not met and reprogrammed (examples include debt unit completion, public debt law submission timing, GL-software roll-out, and establishment of unconstrained single price foreign exchange auctions). *Source: IMF staff report content (sections on financial intermediation, safeguards, AML/CFT, program monitoring, quantitative performance criteria, structural benchmarks, and the Technical Memorandum of Understanding).* ### 10. The changes will be measured on a cumulative basis from the stock at end- ### 10. The changes will be measured on a cumulative basis from the stock at end-September 2009. ### Net International Reserves (NIR) - Measurement components (change measured from end-September 2009, cumulative): - a. Change in net foreign assets (“Réserves de change nettes” of the BRH Table 10R). - b. Minus the change in foreign currency deposits of commercial banks at the BRH (“Dépôts à vue en dollars U.S. et en Euros des BCM à la BRH”, and the “CAM transfer” of the BRH Table 10R). - c. Minus the change in the stock of project accounts (“Comptes de projets”) as defined in 6.b above. - d. Minus the change in the stock of Special Accounts (“Comptes Spéciaux”) in dollars and Euros (and excluding gourdes), and seized values (“Valeurs Saisies UCREF”), the latter as defined in 6.c above. - e. Plus the change in the stock of the Special Drawing Rights (SDR) allocation (“Allocations DTS”) from the BRH Table 10R. - Data valuation: - Data will be expressed in U.S. dollar terms and valued at the corresponding end-period market exchange rate from the BRH Table 10R. - Definition and exclusions: - NIR = BRH’s gross foreign assets (monetary gold, all claims on nonresidents, SDR holdings, and BRH claims in foreign currency on domestic financial institutions) minus reserve liabilities (including liabilities to nonresidents of one-year maturity or less, use of Fund credit, and excluding the full SDR allocation, and trust funds). - Swaps in foreign currency with domestic financial institutions and pledged or otherwise encumbered reserve assets are excluded from NIR. - Note: - Letters of credit and guarantee (“Lettres de crédit” and “Lettres de garantie”) are reported in Table 10R as part of BRH foreign liabilities (“Engagements extérieurs”), and therefore are already netted out of NIR. ### Net Domestic Assets of the BRH - Program definition and measurement: - Change in net domestic assets of the BRH = change in base money (program definition according to Section I) minus the change in the U.S. dollar amount of net international reserves (program definition according to section C), converted into gourdes at the program exchange rate. - Program exchange rate: - The program exchange rate of G40.0 per U.S. dollar for the period June 2010- March 2013. - Measurement base: - Changes measured on a cumulative basis from the stock at end-September 2009. ### PetroCaribe-Related Funds - Balance and treatment (as of March 2013): - Outstanding balance totaled 293 million dollars held at the BNC state bank. - Interim fiscal treatment until binational company is operational: - Authorities plan to channel new PetroCaribe/ALBA-related inflows through a binational Venezuela-Haiti corporation; statutes published in the “Journal Officiel” (Le Moniteur) but firm not operational yet. - PetroCaribe-related fiscal transactions are still considered in the budget and inflows constitute direct external debt of the central government. - These resources are under direct control of the central government and will be fully reflected in the fiscal tables underpinning the program. - Treated as budget support loans, with proceeds partly or entirely deposited in government accounts in the banking system (PetroCaribe deposits). - Spending from PetroCaribe resources (up to US$400 million in FY 2012), financed with drawdown of PetroCaribe deposits in the banking system, will be fully reflected in program tables. - Conditions once company is operational: - Annual budgets of the company will be published on the MEF website before the beginning of the fiscal year. - Audited annual financial statements will be published within six months of the end of each financial year. - Reporting commitment: - Authorities will share with staff the by-laws of the new binational entity as soon as enacted, and financing terms of any financing received by such entity to assess whether flows constitute public debt. ### Non-Concessional Public Sector External Debt - Definition of debt for program purposes: - Comprises all forms of debt (loans, suppliers’ credits, leases) that are current, non-contingent liabilities created under contractual arrangements requiring future payments in assets or services, as set out in point 9 of the Guidelines on Performance Criteria with Respect To External Debt in Fund Arrangements (Decision No. 6230-(79/140), adopted August 3, 1979, as amended). - Ceilings and coverage: - A ceiling applies to contracting and guaranteeing by the public sector of new non-concessional debt denominated in foreign currency with original maturities of one year or more. - Zero ceiling on non-concessional debt of up to and including one year. - Ceiling applies to debt and commitments contracted or guaranteed for which value has not yet been received, including private debt with official guarantees constituting contingent public sector liabilities. - For program purposes, a guarantee arises from any explicit legal obligation of the public sector to service a debt in event of nonpayment by the debtor. - Concessionality threshold and PV calculation: - A debt is concessional if it includes a grant element of at least 35 percent. - Grant element = (nominal value − PV of debt) / nominal value, expressed as percentage of nominal value. - PV of debt at contracting is calculated by discounting future payments using currency-specific commercial interest reference rates (CIRRs) as laid out by the OECD. - For debt with maturity ≥ 15 years, ten-year-average CIRR used; for debt with maturity < 15 years, six-month average CIRR used. - Add margins for differing repayment periods: 0.75 percent for repayment periods < 15 years, 1 percent for 15 to 19 years, 1.15 percent for 20 to 29 years, and 1.25 percent for 30 years or more. - Exclusions from ceiling: - Short-term import-related credits, rescheduling arrangements, borrowing from the Fund, non-resident purchases of treasury bills, and guarantees for the electricity sector in the form of letters of credit. - Program ceiling statement: - The ceilings for contracting and guaranteeing of non concessional debt by the total public sector will be set at zero continuously throughout the program period. ### Arrears of the Central Government - External arrears: - Defined as overdue payments (principal and interest) to non-residents on debt contracted and guaranteed by the central government, defined according to creditor terms. - Criterion of zero accumulation of external arrears will be monitored on a continuous basis. - Domestic arrears (central government) definition includes: - (i) Any bill received by a spending ministry from a supplier for goods and services delivered (and verified) not paid within 90 days after the due date. - (ii) Wage, salary, and other payments to government employees, including direct and indirect allowances, due in a given month but unpaid on the 30th of the following month. - (iii) Interest or principal obligations unpaid 30 days after due date. - Excludes changes in stock of arrears on account of interest, penalties and valuation changes. ### Base Money - Definition and measurement: - Change in base money measured using: - Change in stock of currency in circulation from Table 10R of the BRH. - Change in stock of reserve deposits of commercial banks at the BRH, using gourde sight deposits of commercial banks (dépôts a vue en gourdes des BCM a la BRH) and cash-in-vault of commercial banks (encaisses des BCM). - Measurement base: - Changes measured on a cumulative basis from the stock at end-September 2009. ### Poverty-Reducing Expenditures - Measurement: - Growth measured as the sum of domestically-financed spending for the Ministries in charge of agriculture, health, and education. - Measured as a flow on a cumulative basis from end-September 2009. ### Quarterly Adjustments and Specific Adjustors - Adjustment for Domestic Arrears Accumulation: - Ceilings for net BRH credit to the central government and net domestic banking sector credit to the central government will be adjusted downwards for the amount of outstanding domestic arrears accumulation. - Adjustment for PetroCaribe-related Inflows: - Until the bi-national company is legally established, any drawdown of PetroCaribe-related deposits considered as central government spending for program purposes. - Ceiling for net domestic credit to the central government will include movements in PetroCaribe accounts in the banking system and be adjusted for the difference between actual and programmed stocks of PetroCaribe deposits in the banking system. - Ceilings for net BRH credit to the central government, on BRH net domestic assets, and the floor for NIR will include movements in PetroCaribe accounts at the BRH and be adjusted for differences between actual and programmed stocks at the BRH. - The adjustor will be calculated on a cumulative basis from October 1, 2009. - Adjustment for Budgetary Cash Grants in Second Half of FY2012: - Performance criteria ceilings on BRH net credit to the central government, net domestic financing to the government, and on BRH net domestic assets, and the floor on NIR reflect expected budgetary donor grants equivalent to $27 million during FY2012 from the IDB. - For FY2013, expected budgetary donor grants total $60 million, including IDB $20 million, IDA$20 million, EU $10 million, and Spain $10 million. - If actual grant inflows are lower (higher) than programmed, the performance criteria ceilings and floor will be adjusted upward (downward), and the performance criterion floor will be adjusted downward (upward), by the amount of the difference between actual and programmed inflows. - The adjuster will be calculated on a cumulative basis from October 1, 2009. ### Clarification of Structural Conditionality — Fiscal Sector - Prior actions and requirements: - Public debt law prior action: transmission to Parliament (and sharing with the IMF) of a draft debt law in line with international standards and recommendations of development partners’ TA. - Opening a government central account at the BRH prior action: opening one revenue account for DGI and another for AGD, one operating expenditure account at the BRH, closing the CSTD (compte special du tresor pour le developpement) and opening one investment expenditure account at the BRH. - Prior action on signing and making operational the TSA agreement between the MEF and BRH will require both institutions to sign the agreement. - Publication and benchmarks: - As specified in Tables 2a and 2b, publications related to benchmarks 1a, 2a, 2b, 2c, 3a, 3b, and 2h will continue over the program period on the specified regular basis (monthly or quarterly) with no gaps or unjustified delay. - Specific structural benchmarks: - Strengthening the debt unit (end-December 2013): provide adequate office space and staffing; nominate the officer in charge and set up tasks with official communication; MEF to produce annual debt sustainability analyses and make them available to Fund, MEF services, BRH and MPCE. - Reduce number of domestically-funded imprest accounts to three by ministry/institution and grant signature power to public accountants appointed by MEF (end-March 2014): identify all accounts and current authorized signatories; reduce accounts and provide signature power to designated public accountants. - Roll-out GL-software for all ministries (end-December 2013): provide software copies, ensure adequate installation, and start recording projects and imprest accounts expenditure when effectively paid rather than on account replenishment. - Allocate offices to the medium-tax payer office (by end-September 2013): move staff to a permanent location with necessary equipment and tools. - Set up task force to review public investment framework: decree establishing a task force of local and international experts to review investment program and differentiate projects ready to be financed from those at early stages, identifying status, next steps, and TA needs. ### Monetary Policy and Financial Sector — Provision of Information - Reporting commitments to IMF staff: - Provide daily, weekly, and monthly monetary and fiscal indicators; details of any loan contract or guarantee to be ratified by a non-financial public sector entity before signature; and other data upon request. - Daily reporting: - The exchange rate. - Weekly monetary indicators to be reported (maximum five-day lag for preliminary data; four weeks for final data): - (a) Stock of BRH bonds - (b) Deposits at commercial banks (in gourdes and U.S. dollars) - (c) Credit to the private sector (in gourdes and U.S. dollars) - (d) Credit to central government and the public sector (net) - (e) Currency in circulation - (f) Base money - (g) Details of inflows and outflows of gross foreign exchange reserves - (h) Volume of foreign exchange transactions, of which BRH sales and purchases - (i) Gross international reserves - (d) Net international reserves (NIR) — NIR data reported using specified table format - Weekly fiscal indicators: - (a) Revenues (internal, external, other) - (b) Expenditures on a cash basis (wages and salaries, goods and services, external debt, current accounts) - Monthly reporting (maximum 30-day lag for final data unless specified): - Table 10 R and Table 20 R from the BRH - Tableau on the comptes courants - “Project Accounts”, by donor - Tableau de trésorerie de devises - Tableau des Operations Financières de l’Etat (within 20 days after end of month) - Table underlying the TOFE (enables determination of checks in circulation and balance on investment project accounts (TOFE-extension)) - Set of external debt tables - Report of revenue collection of the DGI (Rapport d'activités) - The aide memoire table (monetary policy indicators: foreign exchange interventions, Gourde and foreign currency credit and deposits, monetary financing) - Tables of revenue collection of AGD (Indicateurs d’activités aux ports, Rapport analytique des perceptions douanières à l'importation) - Balance of Bureau de Monetization accounts, including spending from “fonds de contrepartie” and movements linked to ALBA-PetroCaribe agreement - Balance of PetroCaribe/ALBA-related deposits at commercial banks and the BRH (with a maximum 30-day lag for final data) - Quarterly reporting: - Report on poverty-reducing expenditures, with a maximum 30-day lag for final data. ### Key Figures — NIR and Related Balances (BRH, End-March 2013; in millions of U.S. dollars) - A. Gross Foreign Exchange Reserves: 2,193.0 - B. Gross Liabilities: 282.9 - C. Net Foreign Assets (=A-B): 1,910.1 - D. FX deposits of commercial banks and CAM transfer at the BRH: 860.9 - E. Project accounts: 7.8 - F. Special accounts in U.S. dollars and euros: 7.3 - G. Seized values: 0.0 - H. SDR allocation (liability): 117.7 - J. NIR (=C-D-E-F-G+H): 1,151.8 ### PetroCaribe Deposits (Selected cumulative flows and stocks, 2008/09–2012/13; figures as presented) - Total deposits in government accounts in the banking system (Cumulative flows G mlns): 1804.3, 1520.7, 2309.4, 3204.9, 3779.8, 3975.9, 6144.0, 5518.1, 6145.6, 6773.2, 7400.7, 8028.3, 8373.6, 8718.9 - Total deposits in government accounts in the banking system (in US dollars (US$ mlns)): 42.4, 43.2, 62.4, 84.3, 99.0, 102.1, 155.6, 137.9, 153.0, 163.3, 180.5, 193.1, 198.7, 204.2 - Stocks (G mlns): 3713.2, 5517.5, 5233.9, 6022.5, 6918.1, 7493.0, 7689.1, 9857.2, 9231.3, 9858.8, 10486.4, 11113.9, 11741.5, 12086.8, 12432.1 - Stocks (in US dollars (US$ mlns)): 88.9, 131.3, 132.1, 151.3, 173.2, 187.9, 191.0, 244.4, 226.8, 241.9, 252.2, 269.4, 282.0, 287.6, 293.1 - Deposits in government accounts at the BRH (Cumulative flows G mlns): -90.3 repeated across the series and (in US dollars (US$ mlns)): -2.2, -2.1, -2.2, -2.2, -2.2, -2.2, -2.2, -2.3, -2.3, -2.3, -2.3, -2.3, -2.3, -2.3 - Deposits in government accounts at the BRH Stocks (G mlns): 171.0, 80.7, 78.0, 74.9, 75.0, 75.0, 75.0, 75.0, 75.0, 75.0, 75.0, 75.0, 75.0, 75.0 - Deposits in government accounts at the BRH Stocks (in US dollars (US$mlns)): 4.1, 1.9, 2.0, 1.9, 1.9, 1.9, 1.9, 1.9, 1.8, 1.8, 1.8, 1.8, 1.8, 1.8 - Deposits in government accounts in commercial banks (Cumulative flows G mlns): 1894.6, 1613.7, 2405.4, 3300.9, 3875.8, 4071.9, 6240.0, 5614.1, 6241.6, 6869.2, 7496.7, 8124.3, 8469.6, 8814.9 - Deposits in government accounts in commercial banks (in US dollars (US$ mlns)): 44.6, 45.4, 64.6, 86.5, 101.2, 104.3, 157.8, 140.2, 155.3, 165.6, 182.8, 195.4, 201.0, 206.5 - Stocks (G mlns): 3542.2, 5436.8, 5155.9, 5947.6, 6843.1, 7418.0, 7614.1, 9782.1, 9156.2, 9783.8, 10411.3, 11038.9, 11666.4, 12011.8, 12357.1 - Stocks (in US dollars (US$ mlns)): 84.8, 129.4, 130.1, 149.4, 171.3, 186.0, 189.1, 242.6, 224.9, 240.1, 250.4, 267.6, 280.2, 285.8, 291.3 *Source: Excerpts from the IMF staff report and associated program documentation (Haiti). The data and definitions above are as presented in the source text.* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2013/_cr13260.pdf_